German Machine Tool Industry Sees Decline in Orders

Frankfurt am Main, Germany – Orders received by the German machine tool industry in the second quarter of 2020 were 46 percent down on the same period last year. In the process, orders from Germany fell by 36 percent. 51 percent fewer orders were received from abroad. In the first half of 2020, the level of orders fell by 35 percent. Domestic orders were 28 percent lower than in the previous year. The level of orders from abroad was reduced by 39 percent. 

"The second quarter figures clearly show the impact of the corona lockdown," said Dr Wilfried Schäfer, Executive Director, the VDW (German Machine Tool Builders' Association), Frankfurt am Main. Many customer sectors, especially the aviation and automotive industries, are experiencing sharp declines in sales. It is encouraging to note, however, that the downturn in the level of orders received now appears to have bottomed out. In June, there was a noticeable increase compared to the two previous months.  

The two leading indicators – the PMI (Purchase Managers Index) and Ifo business climate index – are also providing more positive signals. In July, for the first time since the crisis began, the global PMI came very close to reaching the 50-point mark, which represents growth. This could herald the hoped-for recovery in the second half of the year, said Schäfer. 

Image Source: VDW

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